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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: LABMAN who wrote (15034)	4/13/1999 11:34:00 AM
From: John Fairbanks	Respond to of 29382

I'd be very interested in hearing what any of you think about MIMS... It's the first Undervalued Dog pick that I've actually bought in over a year... the stock is a full NASDAQ stock, fundamentals look great, small float, but the stock has basically just been sitting there. I'm starting to wonder if there are things I'm not seeing about this one or if the UD simply doesn't have much of a following any more. The one thing that makes me wonder is the fact that the business seems to have changed some at year's end and I don't think that has been reflected yet... here is the UD summary: investor-list - analystgroup.com ****Undervalued Dog**** Volume 4, No. 32, April 9, 1999 MIM Corporation (NASDAQ : MIMS) Industry: Healthcare Facilities Recent Price: $2.125 Daily Average Volume (3 Month Avg.): 80 K 52-Week Range: $2-$6.4375 Outstanding Shares: 17.8 million Active Float: 4.27 million Market Cap: $37.8 million % Owned By Management and Insiders: 60 % Owned by Institutions: 16 (The Kaufman Mutual Fund, one of the best mutual funds, owns 5%) IPO by PaineWebber Inc.: $13 per share on 8/96 1998 Revenues: $451 million 1998 EPS: 0.29 Trailing PE: 7.33 Industry PE: 24.0 Book Value: $2.28 Price/Book: 0.93 Industry Price/Book: 2.56 Cash Flow (MRQ): 1.64 Beta: 2.59 Short Interest: 0.192 million Recommendation: Strong Buy Target Price or Takeover Price: $6-$7 within 3-12 months BUSINESS SUMMARY AND CORPORATION BACKGROUND: MIM Corporation (NASDAQ: MIMS) is an independent pharmacy benefit management and prescription mail service organization that partners with managed care organizations and healthcare providers to control prescription drug costs. MIM provides its customers with innovative pharmacy benefit products and services utilizing clinically sound guidelines to ensure cost control and quality care. MIM encourages improved quality of care, increased patient accessibility and medical cost effectiveness. Through its prescription mail service subsidiary, the Company provides mail order pharmacy distribution services with an emphasis on serving specific groups of individuals affected with diseases, particularly diabetes and AIDS, which require long-term maintenance medications. SUMMARY: There is a turnaround situation. In 1997, the company lost money at $1.07 per share. However, the company doubled its revenues, up to $451 million, in 1998 with earnings at 0.29 per share. Also we notice that the company has dramatically improved its gross and net profit margins in the past year. We believe the company will continue to do so this year. We estimate the earnings for 1999 will be in the range of $0.65 to $1.00 per share. We heard that the company may be able to report $0.25 per share for first quarter's earnings sometime next month. On April 5, 1999, MIMS announced the launch of Clinical Management System (CMS), a proprietary Internet-based claims reporting tool that provides customers in-depth drug utilization and financial information. Developed internally, CMS enables MIM's clinicians and customers to review claims transactions, perform cost analyses, generate customized reports, and trend cost information. CMS improves the communications between MIM and its customers through better understanding its physician prescribing habits and utilization trends. By keeping customers better informed with current data, more educated decisions can be made within a shorter time period, allowing for improved cost management. In addition, CMS' user-friendly graphic interface allows for easy operation of the application by executives from multiple disciplines within an organization. This development, we believe, will be another major step for the company to have another major revenue channel while the company is able to significantly reduce costs. The stock price was over $5 last December. Since then, the price has declined to the current level. Technical analysis suggests that there is a strong technical support in the range of $2 and the stock is extremely oversold. Bollinger Bands strongly tighten to the average, indicating that sharp moves of the price will occur. On Balance Volume has started to head in the opposite direction to the stock price, suggesting that direction of the price will be reversed. The stock has been basing for a while, as the stock gets little publicity in the investment community. We don't see much downside. With its solid fundamentals and earning potential, we believe the stock upside can easily reach $3 to $4 and then advance to $6 to $7 within next 3 months to 12 months! Also, the company is likely to be a takeover target. With appropriate valuation, the company should be worth about $6-$7. Contact: MIM Corporation Mr. Scott R. Yablon Phone: 914/460-1600 Fax: 914/460-1661 ------------------------------------------------------------------------------------ Copyright 1999, analystgroup.com. All rights reserved. Persons may reprint or copy any portion of this publication, provided any reprint or copy is accompanied by our web address (http://www.analystgroup.com). Invite your friends to visit our website! <p>